Brewin Dolphin is to cut VAT from all its managed portfolios from 1 October, it announced today.
The wealth management company took action after HM Revenue & Customs confirmed that Brewin was able to self-assess whether VAT was due on its managed portfolio service (MPS).
Antony Champion, head of intermediaries at Brewin Dolphin, said the decision affected active and passive ranges.
"HMRC has now confirmed that we can self-assess whether VAT is due on our MPS," he said. "We have reviewed the tax rules and we are confident that VAT should not apply.
"We have always maintained tax should not be a competitive advantage. We are delighted to be in a position to be able to remove it and we are working with our platform partners to remove VAT at the earliest opportunity."
Brewin's MPS had more than £3.5bn in assets under management as of 30 June 2019, and was expanded in September last year with the addition of Cautious Higher Equity and Income Higher Equity strategies.